Latest news with #financial crisis
BBC News
10 hours ago
- Business
- BBC News
What next after City rate-rigging convictions quashed?
After a decade-long legal battle, two former City traders who were at the centre of one of the biggest scandals of the financial crisis have had their rate-rigging convictions Hayes and Carlo Palombo were jailed following trials for manipulating the interest rates used for loans between banks, known as Tuesday, their convictions were overturned in a ruling that raises many questions. Could Hayes and Palombo claim compensation? In the UK, defendants who have had their convictions overturned due to a miscarriage of justice can potentially claim compensation. But it is not key factor determining eligibility is whether the overturned conviction was deemed "unsafe" and whether a new or newly discovered fact proves innocence "beyond reasonable doubt".If those conditions are met, compensation may be awarded by the Ministry of Justice, but even then, deductions for living expenses during imprisonment may Hayes told BBC's Newsnight on Wednesday: "It would be great to get some compensation, but I won't get any from the British government. I've made peace with that."There could be another way. After a US court threw out their rate-rigging convictions three and a half years ago, defendants including former Deutsche Bank trader, Matt Connolly, and his British former colleague, Gavin Black, sued their former employer for malicious prosecution, later agreeing confidential settlements. Could other convicted traders appeal? Seven other traders, who were sentenced to jail for rigging interest rates, are expected to do Hayes' conviction in 2015, all the brokers he was alleged to have conspired with to manipulate interest rates were acquitted in a separate in 2016, three former Barclays traders – Jay Merchant, Jonathan Mathew and Alex Pabon – were convicted of manipulating Libor. Together with Peter Johnson, who had pleaded guilty before the trial, they were given prison sentences in July 2016 ranging from two years and nine months to six serving out their time and emerging from jail, they are now taking advice from lawyers and are likely to apply to the Criminal Cases Review Commission to refer their cases back to the Court of the Supreme Court has now ruled in Hayes and Palombo's favour, that is likely to be a straightforward process compared to the seven-year struggle of Hayes to convince the CCRC to refer his case. Other questions to be answered Mr Hayes has said he wants to see "a public inquiry into how what happened to us happened"."How was the Court of Appeal continually able to frustrate attempts to get this matter heard by the Supreme Court?" he Palombo said he "100%" believed he was the scapegoat for the anti-bank backlash following the 2008 financial crash. He questioned why he, as a junior trader at Barclays, was singled politicians including David Davis, John McDonnell and Lord Tyrie, who conducted a short parliamentary inquiry into Libor manipulation in 2012, have said there should be a public have argued in particular for a probe of the interest rate manipulation ordered by banks' senior managers, under pressure from central banks and governments including the Bank of England, as exposed the BBC Radio 4 series The Lowball are also questions about how the Serious Fraud Office also took most of its evidence from external lawyers hired by Barclays, UBS or Deutsche Bank to investigate of the reasons Connolly and Black brought the cases is that a judge in the US ruled that US prosecutors at the Department of Justice had "outsourced" their investigation to the target of the investigation – Deutsche Bank. Allowing banks to investigate themselves by employing external law, firms who then handed over evidence to the US Department of Justice, put employers in a "uniquely coercive position" towards employees, ruled judge Colleen McMahon.
CBS News
14 hours ago
- Business
- CBS News
Harvey, Illinois to lay off about 10% of its city workforce
The south Chicago suburb of Harvey announced Wednesday that approximately 10% of its municipal workforce will be laid off next month. That figure amounts to about 20 people. In a news release, Harvey city leaders said the layoffs were necessary to stabilize the city's finances. "This is not a decision we wanted to make," Harvey Mayor Christopher Clark said in a news release. "But after every effort to avoid cuts—including eliminating discretionary spending, enforcing tax compliance, and making painful operational adjustments—we have no choice." On July 1, Mayor Clark warned that the City of Harvey was $149 million in debt, owed $12.2 million in unpaid property taxes in just one year, and is suffering from tax-dodging businesses that place a burden on working-class residents. "Harvey residents have borne the brunt of rising costs and unfair tax practices for too long," Clark said in the release. "It is unconscionable that 465 commercial property owners have failed to pay their taxes while benefiting from police, garbage removal, water, and other critical services. These layoffs are a direct consequence of their failure to contribute their fair share." The city said the layoffs will affect departments across city services, and some disruption is to be expected. But core safety functions such as the fire and police departments will continue, the City of Harvey said.
Times
2 days ago
- Business
- Times
Rachel Reeves warned that deregulation risks financial crisis
The governor of the Bank of England has warned Rachel Reeves that cutting red tape on the banking sector risks sparking another financial crisis as he downplayed the rise in UK government debt costs. Andrew Bailey told a group of influential MPs on Tuesday that rolling back restrictions on the City and ditching bank ringfencing guidelines could destabilise the UK financial system and 'would not be [a] sensible' decision for the time being. In a near two-hour long session with the Treasury select committee before the parliamentary summer recess, Bailey also said that the rise in long-term government debt costs was not 'unique' to the UK. He said investors were ditching US assets to curb their exposure to the dollar owing to concerns about the economy since President Trump returned to the White House. The governor, who, alongside his role at the central bank, recently took up the chairmanship of the Financial Stability Board, said he could understand why some people would think that 'the financial crisis is now way in the past, we've got past that, that's all solved, that's all out of the way, move on'. However, he said that 'for those of us who were veterans of sorting the problems of [the financial crisis] out' there remained a live threat to financial stability which required lawmakers to retain robust regulations. His comments come after the chancellor told bankers at the annual Mansion House dinner this month that the UK's regulatory regime was a 'boot on the neck' of businesses which risked 'choking [them] off'. Bailey, 66, said he would not have used such phrasing. Reeves announced that the government would reform laws that require lenders to separate their retail and investment banking businesses, a requirement put in place after the 2008 global financial crisis to shield depositors from banks' riskier activities. Several City grandees, including Sir John Vickers, the architect of the ringfencing rules, have expressed concern at the government's deregulation drive, which is intended to reverse weak economic growth. Bailey also downplayed the rise in UK government borrowing costs and said that it was part of a worldwide trend created by Trump's volatile tariff policymaking and a general rise in public deficit spending. 'We've seen an increase in term premium in government bond markets… yield curves have steepened', Bailey said, adding this was 'a global phenomenon, it is not in any sense unique [to the UK]'. The rate on the 30-year UK government bond, or gilt, stands at 5.43 per cent, up from 4.67 per cent compared to a year ago. The yield, which moves inversely to prices, on the US equivalent has risen to 4.93 per cent from 4.48 per cent over the same period. Bailey's comments come as figures from the Office for National Statistics on Tuesday showed that UK debt interest spending jumped to £16.4 billion in June, the second-highest for that month since the records began in 1997. Government borrowing topped £20 billion in the month also, above the Office for Budget Responsibility's projection for the month, strengthening expectations for tax increases at the autumn budget. Trump's erratic decision-making on how much to tax imports from specific countries had led to 'rebalancing' among markets 'which involves a reduction in exposure to dollar assets', Bailey said. The dollar index, which measures the greenback against six comparable currencies, is down nearly 10 per cent since the start of the year. The governor said that, judging by conversations with market participants and based on granular data, 'the most crowded trade in the market at the moment is short dollar'. He said that since Trump first announced his 'reciprocal tariffs' in April, there had been 'a breakdown in established correlations in markets'. Stock markets globally jolted lower in the immediate aftermath of Trump's first tariff announcements, with the S&P 500 index posting one of its largest losses since the Great Depression. However, an equity rally has since pushed several indices to a record high. This week, the FTSE 100 closed at its highest-ever level of just over 9,000 points. Taxes on goods imported to the US from most countries will increase sharply from August 1 after Trump delayed the implementation of his 'reciprocal tariffs' several times.
Yahoo
2 days ago
- Business
- Yahoo
Best money market account rates today, July 22, 2025 (Earn up to 4.41% APY)
Find out which banks are offering the top rates. Money market accounts (MMAs) can be a great place to store your cash if you're looking for a relatively high interest rate along with liquidity and flexibility. Unlike traditional savings accounts, MMAs typically offer better returns, and they may also provide check-writing privileges and debit card access. This makes these accounts ideal for holding long-term savings that you want to grow over time, but can still access when needed for certain purchases or bills. Where are the best money market interest rates today? The national average interest rate for money market accounts is just 0.62%, according to the FDIC. However, the best money market account rates often pay above 4% APY — similar to the rates offered on high-yield savings accounts. Here is a look at today's highest money market account rates: Interested in earning the best possible interest rate on your savings balance? Here is a look at some of the best savings and money market account rates available today from our verified partners. This embedded content is not available in your region. Historical money market account rates Money market account rates have fluctuated significantly in recent years, largely due to changes in the Federal Reserve's target interest rate, known as the federal funds rate. In the wake of the 2008 financial crisis, for example, interest rates were kept extremely low to stimulate the economy. The Fed slashed the federal funds rate to near zero, which led to very low MMA rates. During this time, money market account rates were typically around 0.10% to 0.50%, with many accounts offering rates on the lower end of that range. Eventually, the Fed began raising interest rates gradually as the economy improved. This led to higher yields on savings products, including MMAs. However, in 2020, the COVID-19 pandemic led to a brief but sharp recession, and the Fed once again cut its benchmark rate to near zero to combat the economic fallout. This resulted in a sharp decline in MMA rates. But starting in 2022, the Fed embarked on a series of aggressive interest rate hikes to combat inflation. This led to historically high deposit rates across the board. By late 2023, money market account rates had risen substantially, with many accounts offering 4.00% or higher. Throughout 2024, MMA interest rates remained elevated, and it was possible to find accounts that paid well above 5% APY. Today, rates remain high by historical standards, though they've begun a downward trajectory following the Fed's most recent rate cuts later in late 2024. Today, online banks and credit unions tend to offer the highest rates. What to consider when choosing a money market account When comparing money market accounts, it's important to look beyond just the interest rate. Other factors, such as minimum balance requirements, fees, and withdrawal limits, can impact the total value you get from the account. For example, it's common for money market accounts to require a large minimum balance in order to earn the highest advertised rate — as much as $5,000 or more in some cases. Other accounts may charge monthly maintenance fees that can eat into your interest earnings. However, there are several MMAs available that offer competitive rates without any balance requirements, fees, or other restrictions. That's why it's important to shop around and compare accounts before making a decision. Additionally, ensure that the account you choose is insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), which guarantees deposits up to $250,000 per institution, per depositor. Most money market accounts are federally insured, but it's important to double-check in the rare case the financial institution fails. Read more: Are money market accounts safe? Sign up for the Mind Your Money weekly newsletter By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Money market account rates: Frequently asked questions What are money market rates right now? Today, money market account rates are still quite high by historical standards. The best accounts provide over 4% APY, with the highest rate available today at 4.51% APY. How much will $10,000 make in a money market account? The amount $10,000 will earn in a money market account depends on the annual percentage yield (APY) offered by the account, as well as how long you keep your money in the account. Let's say you choose to deposit $10,000 in a money market account that earns 4% APY with monthly compounding interest. After one year, you would earn $407.44 in interest, for a total balance of $10,407.44. What is the downside of a money market account? Money market accounts are generally safe and flexible savings options, but like any other financial product, they come with some downsides, too. For instance, some MMAs require a high minimum balance to open the account or to earn the advertised APY. Failing to maintain that minimum balance can result in penalties or reduced interest rates. Additionally, money market rates are variable, which means they can change at any time at the bank's discretions. If interest rates drop, so will your account APY, which can make future earnings unpredictable compared to fixed-rate products like CDs. This embedded content is not available in your region.
Wall Street Journal
14-07-2025
- Business
- Wall Street Journal
Jamie Dimon Says Private Credit Is Dangerous—and He Wants JPMorgan to Get In on It
Jamie Dimon says Wall Street's hottest trend is a recipe for a financial crisis, but he's investing billions to get in on it anyway. His plan: swoop in strategically and profit if there's a meltdown. In the ballroom of the swanky Loews Hotel in Miami Beach, Dimon got on stage in front of hundreds of clients in February to talk about the boom in unregulated lending to highly indebted companies. This fast-growing market has been sidelining big banks for years, and JPMorgan Chase's JPM -0.46%decrease; red down pointing triangle chief executive said it reminded him of the craze in subprime mortgages that sparked the 2008 financial crisis.
